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pashok25 [27]
3 years ago
9

JFS Co. constructed a new subdivision during 2020 and 2021 under contract with National Hoopla Company. Relevant data are summar

ized below: Contract amount $ 3,000,000 Cost in the year: 2020 1,200,000 2021 600,000 Cost to complete: 2020 1,000,000 2021 800,000 Contract billings: 2020 1,500,000 2021 1,500,000 JFS recognizes revenue upon completion of the contract. In its December 31, 2020, balance sheet, JFS would report: Multiple Choice The contract asset, deferred profit, of $400,000. The contract asset, contract amount in excess of billings, of $1,500,000. The contract asset, cost and profits in excess of billings, of $500,000. The contract liability, billings in excess of cost, of $300,000.
Business
1 answer:
timama [110]3 years ago
7 0

Answer:

The contract asset, cost and profits in excess of billings, of $500,000.

Explanation:

As JFS follows completion contract method, the following will be recognized in the books for December 31, 2020:

1. Cost to Complete -                        $1,000,000

2. Revenue (billings done in 2020) <u>$1,500,000</u>

3. Profit -                                             <u>$500,000</u>

Hence, the third option is correct

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In each of the following situations, indicate whether the 50% reduction for meals applies.
Mashcka [7]

Answer:

Each year, the employer awards its top salesperson an all-expense-paid trip to Jamaica.

  • This should be considered as part of the employees' compensation (and the employee should be taxed), therefore, the company can deduct 100% of it.  

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The employer sponsors an annual Labor Day picnic for its employees.

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5 0
3 years ago
Selected financial data for Spark Enterprises follows for a production level of 120,000 units: (4 points) Total fixed costs $300
Marta_Voda [28]

Answer:

Instructions are below.

Explanation:

Giving the following information:

Total fixed costs= 300,000

Total costs= $450,000

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A) Unitary variable cost= 150,000/120,000= $1.25

B) Units= 75,000

<u>The fixed costs remain constant no matter how many units are made (between relevant ranges).</u>

Total fixed costs= $300,000

C) UNits= 160,000

Total variable costs= 1.25*160,000= $200,000

D) Units= 180,000

Total fixed costs= 300,000

Total variable costs= 1.25*180,0000= 225,000

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6 0
2 years ago
True or false?
valentina_108 [34]
True total utility always decreases when marginal utility is present
6 0
3 years ago
A $1,000 face value bond currently has a yield to maturity of 6.69 percent. The bond matures in 3 years and pays interest annual
algol [13]

Answer:

$1,008.18

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